Biolife Sciences (Biolife Sciences) ROC % : 6.91% (As of May. 2008)

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What is Biolife Sciences ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Biolife Sciences's annualized return on capital (ROC %) for the quarter that ended in May. 2008 was 6.91%.

As of today (2024-06-14), Biolife Sciences's WACC % is 0.00%. Biolife Sciences's ROC % is 0.00% (calculated using TTM income statement data). Biolife Sciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Biolife Sciences ROC % Historical Data

The historical data trend for Biolife Sciences's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Biolife Sciences ROC % Chart

Biolife Sciences Annual Data

Trend

Nov04

Nov05

Nov06

Nov07

ROC %

-123.53

-253.37

0.56

0.77

Biolife Sciences Quarterly Data
	Nov04	Feb05	May05	Aug05	Nov05	Feb06	May06	Aug06	Nov06	Feb07	May07	Aug07	Nov07	Feb08	May08
ROC %	Get a 7-Day Free Trial										22.42	1.02	-7.92	-8.97	6.91

Biolife Sciences ROC % Calculation

Biolife Sciences's annualized Return on Capital (ROC %) for the fiscal year that ended in Nov. 2007 is calculated as:

	ROC % (A: Nov. 2007 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Nov. 2006 )	+	Invested Capital (A: Nov. 2007 ))	/ count )
=	0.039 * ( 1 - 0% )	/	( (4.947	+	5.155)	/ 2 )
=	0.039	/	5.051
=	0.77 %

where

	Invested Capital		(A: Nov. 2006 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3.474	-	0.345	-	( 0.156	-	max(0, 2.926	-	1.108	+	0.156	))
=	4.947

	Invested Capital		(A: Nov. 2007 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3.762	-	0.72	-	( 0.409	-	max(0, 3.496	-	1.383	+	0.409	))
=	5.155

Biolife Sciences's annualized Return on Capital (ROC %) for the quarter that ended in May. 2008 is calculated as:

	ROC % (Q: May. 2008 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2008 )	+	Invested Capital (Q: May. 2008 ))	/ count )
=	0.336 * ( 1 - 0% )	/	( (4.834	+	4.89)	/ 2 )
=	0.336	/	4.862
=	6.91 %

where

	Invested Capital		(Q: Feb. 2008 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3.174	-	0.647	-	( 0.02	-	max(0, 3.206	-	0.899	+	0.02	))
=	4.834

	Invested Capital		(Q: May. 2008 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3.041	-	0.434	-	( 0.04	-	max(0, 3.038	-	0.755	+	0.04	))
=	4.89

Note: The Operating Income data used here is four times the quarterly (May. 2008) data.

Biolife Sciences (OTCPK:BLFE) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Biolife Sciences's WACC % is 0.00%. Biolife Sciences's ROC % is 0.00% (calculated using TTM income statement data). Biolife Sciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Biolife Sciences ROC % Related Terms

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Biolife Sciences (Biolife Sciences) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Biolife Sciences Inc (OTCPK:BLFE) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2831 Street Rose Parkway, No. 200, Henderson, NV, USA, 89052

Website

https://www.biolifesciences.com

Biolife Sciences Inc is a commercialization accelerator, licensor and developer of innovative and disruptive technologies for the healthcare, beauty and food and beverage industry sectors. The company's technologies include antimicrobial copper air filters and copper-infused textiles. Its revenues are primarily generated from the sale of sanitation products.

Executives

Arthur Viola

director, 10 percent owner, officer: CEO

Biolife Sciences (Biolife Sciences) Headlines

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